Increased Asian Competition Pushes BlueScope’s Profits and Earning Lower

Competition from Chinese and Indonesian steel producers and a falling Chinese housing market have combined to push BlueScope Steel’s net profit down to $805.7 million (US$538.2 million) for the year to June 30, from $1 billion a year earlier. However, the company announced today that shareholders will receive a fully franked dividend of 30 cents a share for the second half of the financial year. The board has a target of 60 cents per share per annum. Managing Director and CEO Mark Vassella noted that Earnings Before Interest and Taxation were $1.34 billion, which, while also lower than 2023’s figure, “demonstrates BlueScope’s resilience, as strength in the U.S. steelmaking and global downstream operations offset the impacts of bottom-of-cycle Asian steel [prices] on our Australian and New Zealand steelmaking businesses.”...